Supply Chain Logistic (McDonald’s in Vietnam)

630 words | 3 page(s)

McDonald’s is an international food chain and supply company. Consider its latest entry into Vietnam market; logistics have to be carried out in order to facilitate smooth handling of its business operations whilst meeting all its consumers against all challenges present. This paper will discuss the activities to be outsourced and acceptable solutions given to the problems. It will further discuss the effects of green component in the environment.

The following are activities to be outsourced; one, Distribution and logistics channels such as restaurants, kiosks, post mates websites and app and the McDonald’s app. Two, supply chains, three, inbound logistics, four, operations six and lastly the outbound logistics. There are solutions including scope, perspective to be taken. These include: under distribution channel the company will use selective distribution channel maintaining a push and pull marketing communication which are listed as follows; kiosks, restaurants, post mates website and app and McDonalds app.

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The supply chains operates under a Three-legged stool model in order for McDonald to manage its suppliers and franchisees by ensuring they work together , implementing the five Vested outsourcing rules also makes it more successful. Under the third activity which is inbound logistics, McDonalds replaces most of its suppliers through backward vertical integration to reduce cost and ensure that its products are of top quality. In operations, speed of preparation of meals by skilled personnel and well equipped kitchen is key to meet the market demands. Outbound logistics comes in handy as the last activity to be considered in its outsourcing strategy this comes in the form of; sit-down, drive –thru and ski-thru restaurants. In the case of Vietnam, the key perspectives is to evaluate the market and find most appropriate meals that can easily blend in the population culture so as to maintain relevance and avoid overproduction of food which does not fit in the system. Transportation means must be put into consideration whereby key routes and locations with most number of consumers be given priority and time consciousness in the operations in terms of delivery.

In its operations the green component has to be given maximum attention, safe methods of its food handling, packaging and disposals have to be put in place. This can be achieved by using recyclable packaging, well maintained litter bins and a functioning litter collection system where bins are located in strategic positions, collected in time. Some of the environmental stressors such as pollutants, or exotic species are released in natural ecosystems. Each tonne of goods transported places additional stress on the environment. In this case, solid waste disposal is most likely to be associated with this kind of business. Discarded plastic are a great threat both to plants and marine species.

In these solutions, some problems remain a redundant challenge that the business may only but manage to mitigate but not eliminate. Examples are as follows; in the case meeting the population demands in terms of which kind of food meets their desired taste, the business may not phase out the problem entirely. The other case is in the green component in terms of waste management and pollution for example; during transportation by road, carbon emission cannot be controlled completely even with the use of green energy. How the consumers may choose to handle their waste is also something the company may not be in a position to control.

In conclusion, despite the challenges faced by Madonald food chain, there are some of the activities that had to be outsourced in order to manage the logistics and supply chain. The company made use of supply chain providers to achieve its goals. The use of technology poses a great threat as it leads to environmental pollution and destruction of property. All these solutions helped in solving the problems that were there.

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